A Beginners’ Guide to Bookkeeping with Bank Feeds

Bookkeeping is absolutely essential in a business. Your tax returns are based on it. Your business decisions are (should be) based on it. But typing the details of all your transactions can also be very time-consuming. And boring. And there might be typos. In short – it’s not great.

Using bank feeds automates some of the bookkeeping process, helping save time and resources as well as reducing the risk of data-entry errors.

So how does a business use bank feeds for this time-saving magic? We’ve put together a quick walk-through to get you started.

How do bank feeds work?

Bank feeds are used to connect accounting or bookkeeping software to a bank account. This allows information about the transactions in your bank account to be passed on to your software where they become bookkeeping records – without anyone needing to enter them manually.

It helps keep your records up-to-date in near real-time and, because information comes straight from the bank, there’s no chance of any rogue typos making your accounts go wonky.

The connection is highly encrypted to ensure security. Only regulated software providers (like Pandle!) who meet strict criteria can provide this service.

Why are bank feeds so useful for businesses?

Using bank feeds helps businesses streamline their bookkeeping by:

What else can I do to make bookkeeping faster?

Some bookkeeping software providers (it’s us, we won’t be subtle) also allows users to set up bank rules which categorise transactions and assign tax codes automatically.

This means transactions can be processed into your bookkeeping in a way that makes sense. Otherwise your bank feed helpfully gathers all this data, only to leave it in a big pile for you to categorise next time you sign in. A bit like when the kids help you bring the shopping in.

Automating even more of the bookkeeping process allows the software to take care of more of the heavy lifting involved in business administration. It won’t help with household chores.

How do I set up a bank feed for my accounts?

The first step is to find out whether the bank account you use is compatible with your bookkeeping software. If you’re a Pandle user then you can check which banks are supported using our online tool.

Setting up Bank Feeds for Pandle users

In Pandle, head to the ‘Enter Transactions’ section, select ‘Banking’ and edit the entry method to ‘Bank Feed’. Select the bank and the feed start date, confirm the initial transactions and you’re ready to go.

Do I need to verify the connection?

You might be asked to refresh the connection between your bank account and your bookkeeping software as regular intervals, especially if you use multi-factor authentication. This is a security feature which helps to ensure your data is only accessible to people who have permission.

What about online wallets?

A business might also use online wallets such as Paypal or Stripe to conduct transactions. These are setup as separate feeds, but integrate seamlessly just like bank feeds do.

Learn more about using Pandle to make business accounting easier. Create an account today and decide what to do with all the extra time you get back.